Rare Element jumps 28 pct on takeover speculation
* Shares up over 320 pct in 90-day period on TSX Venture
* Rare earth mines in U.S. eyed for takeover, investment
TORONTO, Oct 18 (Reuters) - Shares in junior miner Rare ElementResources RES.V were up as much as 28 percent on Monday, as buzz aroundthe sector continued to boost miners with rare earth properties in theUnited States.
The Vancouver-based miner, which owns the BearLodge property in Wyoming, has seen its shares soar over 320 percent inthe past 90 days.
Analysts see the company as a prime takeovertarget, as the U.S. government looks to secure a domestic supply of themetals -- including cerium, lanthanum, neodymium, and praseodymium --which are used in products ranging from lasers and ceramics to windturbines and computers.
Currently, over 90 percent of the global supply of rare earth minerals is mined and processed in China.
Beijing recently clamped down on exports, reducing quotas by 70 percent for the second half of 2010.
In September, China made political waves by blocking all rare earthexports to Japan, as the two nations were caught up in a spat after aChinese fishing boat collided with an Japanese coast guard vessel.
Legislation has been introduced in the U.S. Senate and the House ofRepresentatives to increase investment and production of rare earths inthe United States.
Earlier on Monday, trading and mining giantGlencore International [GLEN.UL] said it would develop a rare earth andiron ore project with Wings Enterprises.
Shares in Rare Element Resources were up 26.8 percent on Monday at C$9.70 on the TSX Venture Exchange.
Meanwhile, Colorado-based Molycorp (MCP), which owns the Mountain Pass rare earth mine in California, was up 11.33 percent at $31.45 on the New York Stock Exchange.
($1=$1.01 Canadian) (Reporting by Julie Gordon; editing by Rob Wilson)